General Motors, Ford and Tesla have all warned of an electric vehicle slowdown because they say demand might drop.
With The Expensive Price Tag and High Inflation, Who Is Buying EVs?
Several C-Suite leaders at some of the biggest carmakers voiced fresh unease about the electric car market’s growth as concerns over the viability of these vehicles put their multi-billion-dollar electrification strategies at risk.
Tesla on Wednesday joined General Motors and Ford in being cautious about expanding electric vehicle production capacity, citing economic uncertainties and underscoring fears of a slowdown in demand.
“It’s been a challenging situation, for sure,” Ford CEO Jim Farley said during the company’s third-quarter earnings call after posting greater losses than expected on EVs. “Matter of fact, our business is never short of challenges, especially right now with the evolution of the EV market and new global competitors from China, as well as the technology disruptions.”
“A great product is not enough in the EV business anymore,” Farley continued. “We have to be totally competitive on cost.”
He added that, for consumers, “affordability is an issue” when it comes to EVs.
In a Cox Automotive survey, 53 percent of consumers said EVs will eventually replace internal combustion engines, but less than a third of dealers agreed. Several dealerships interviewed by CNBC said EVs were taking longer to sell and there was a supply and demand imbalance with the vehicles.
Ford said two weeks ago it would increase production on its hybrid F-150 pickup trucks because of waning demand for its all electric model.
GM said on Tuesday it would delay production by a test Chevrolet Silverado and GMC Sierra electric pickups.
The company announced with its quarterly results that it’s abandoning its targets to build 100,000 EVs in the second half of this year and another 400,000 by the first six months of 2024.
EV advocates insist the demand is still there, but consumers are only temporarily shying away because of high interest rates that make EVs — typically more expensive than your average car — more difficult to purchase.
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